Waitrose Stops Shoppers at Motorway Services

July 7, 2009

Waitrose is increasing the time motorists spend at motorway services by up to four times with its first food shops at Welcome Break sites.

Waitrose opened two 2,500sq ft stores at Oxford Services on the M40 and South Mimms on the M25 in May. Both are franchise operations, run by Welcome Break with Waitrose partners on the shop floor.

Waitrose franchise deal with Welcome Break

According to Welcome Break’s director of the South Mimms services, customers’ dwell time has increased from five minutes to 20 minutes since Waitrose opened and visitors are slowing down when they enter the store.

The sites are also reported to be winning repeat business from residents in the vicinity of the stores.

The launch of the motorway sites follows the retailer’s move into smaller format outlets with the launch of market town and convenience stores.

Waitrose managing director, Mark Price, said: “This move into franchising and motorway service areas builds on our recent ventures into other new formats such as market town and convenience – all designed to provide flexibility around our growth ambitions and increase awareness of our brand.”

David Gray, retail analyst at Planet Retail, has visited the South Mimms site and said the concept has potential.

“I think there is space but judging what Waitrose has done in the past, it will not be rolling out very many quickly. I think it is opportunistic at this stage and in a review process.”

Waitrose: chilled convenience offer

Gray said the stores were similar to Marks & Spencer Simply Food, the first major grocery retailer to open on motorways.

“It’s mainly a chilled offer with sandwiches, convenience foods and snacks,” he said.

Around 95% of the range is own label with brands offered in areas such as confectionery and soft drinks. Waitrose’s new value brand, Essential Waitrose, also features with seven lines.

Describing the offer, Waitrose commercial director, Richard Hodgson, said: “We plan to deliver a new dimension in motorway hospitality – the same quality experience people expect from Waitrose with excellent customer service.

“In addition to everyday items such as sandwiches, salads and drinks, customers will also be able to carry out a top up shop on items such as bread, milk and ready meals.”

According to Gray, Waitrose has made changes to its supply chain to facilitate delivery to smaller stores.

Hodgson revealed the Welcome Break deal meant its sandwich supplier is investing over £3m in developing its site to meet the increased demand, for instance.